A growing source of support for the RFC is donors sending us their Required Minimum Distribution (RMD). When donors write a check or have funds electronically transferred directly from their retirement account to a qualified charity, they don’t have to pay a penny in taxes on the full amount of their donation.

In addition to the direct charitable benefit, there are at least three other positive side effects to consider.

1. Making charitable contributions can help donors avoid being pushed into a higher tax bracket, since withdrawals are taxed as ordinary income. Be sure to note that it is a minimum requirement and you can actually make donations of any size and save yourself several hundreds, if not thousands, of dollars. This is worth discussing with your accountant or tax advisor.

2. Individuals who inherit accounts with stocks for companies whose values they do not support (for example fossil fuel stocks or defense contractors) can take a distinct pleasure in donating the proceeds from selling these holdings to non-profits that mean so much to them and share their values.

3. Some donors choose to discuss their charitable contributions with children, grandchildren or other youngsters in your life. This is an opportunity to transmit your values to the next generation.

We hope you'll consider donating your RMD to the RFC, now or in the future. If you decide to donate in this manner and need additional information to process the contribution, feel free to contact us at info@rfc.org.

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*Rules for making charitable donations from various types of retirement accounts, including 401ks and 403bs, vary. Contact your account custodian or advisor for specific rules for your plan/situation

Note: this information is adapted from a fall 2023 guest blog by Christina Platt, available here. Christina Platt has been an RFC board member for more than a decade and is currently the Board Co-Chair. Before that, she was the RFC’s socially responsible (SRI) investment advisor.